Last Updated on Mar 30, 2020 by James W
Binary options are my essence of fast and stable income at the currency market. Let’s start from the beginning. Who invented binary options? What did they emerge from? What are binary options really? Started their way in the US, they evolved to the thing we can see today. The era of purchasing papers is done, and nowadays, it’s time of digital trading. But for what to read about outdated stuff? We are interested where today’s options emerged from, how to use them and what we can get with them. You may find the full-detailed instruction for this at the PAMM-TRADE web-resource.
The Very Beginning
In 2008, there were two exchanges: American Stock Exchange and Chicago Option Exchange. Then, they engaged active collaboration for improving options and their accessibility. They’ve created the standard of contact and trading. Today, the volume of trading lets them make the continuous flow of exchange quotes.
Law and Order
Often, a law appears when it’s no longer needed. Unfortunately, brokers’ actions are not under legal regulations in some countries. But there are self-regulated organizations – associations of several brokers that are eager to create legality and protect traders. From the other hand, there are some states where brokers are regulated and legal. Those ones have licenses and insurance funds for extreme cases. They earn with fees, helping traders work.
The Box of Binary Tools
For any trader, a broker offers the plenty of different contracts. Let’s look into them.
Types of options:
- PUT – buy it, if you forecast the fall of asset price.
- CALL – buy it, if you forecast the rise of asset price.
- ONE Touch – buy it, if you are sure price will reach the specific level. Further price movement doesn’t matter.
- NO Touch – buy it, if you are sure price won’t touch the selected level.
- IN – buy it, if price movement in a passage is forecasted.
- OUT – buy it, if you think asset price will leave passage borders.
Always choose an option that you need. Each of them has its own conditions and you will need special approach to every single tool. In my experience of trading, I use PUT and CALL options. Trading with trend doesn’t suit other types. Making every order, pay attention to selecting time of expiration – the main thing to remember.
How to Earn Your First Million
Just like you, I started from basics. But I started with forex fundamentals. Traded not so much after my working hours. Generally, my trading was profitable, but I often came across with breakeven-finished orders, as they didn’t reach TakeProfit levels (levels of closing the order with profits). One day, I was advised to try binary options. I didn’t know what they were and there was no information about them on the Internet. Everything had to be gotten by my own experience. Luckily, today all the needed information can be found at the PAMM-TRADE website. There, it’s given in the approachable way and perfectly structured.
The main thing for me was to realize: what are binary options? How to gain with them? Using basics of technical analysis, I began testing the new exchange.
The primary idea of option working is time. Classical forex has the essence of the number of points passed by price. And binary options trading essence is based on the time of the order.
At small periods, there is “noise” at the market – abrupt jumps, false movements of breaking the resistance line (level the price bounces off from). So, if you just get acquainted with this field, you’d better choose a higher timeframe (time period), for example, 30 minutes or an hour. At them, all the movements of 1-minute or 5-minute charts are displayed are shadows of the candlestick and have lower weight in the analysis.
The most important thing is to remove passion and trade with cold mind. For trading with news, you may use basics of fundamental analysis. In the rest of the time, we can use the indispensable technical analysis. Engaging it in classical, no-indicator way, you can get stable income. The simplest variation of trading with trend, will give you confidence in every order, if you are able to draw lines of support/resistance – awesome! Your strategy is already full-fledged and profitable.
In order to have stable profits, not only the strategy is important. Capital management is the very significant part of the full-value strategy. Not every order will give you gaining – you must be ready for this. You should determine the size of stake which will let you get profits always, even after a couple of unprofitable orders. A good strategy gives incomes for a month, not for a day or hour. You should trade with moderate orders for a while. Luckily, most brokers offer such an opportunity. You can hone your strategy and choose the right way of managing the capital, having minimal risk.
Based on the experience proven by hundreds of traders, you will be able to increase your deposit.
A Good and Bad Trader. Who Will You Be?
What is the difference between bad traders who lose their money and good that increase deposits? The main thing you should realize is that there is the certain amount of physical money in the world. It can’t be so that virtual money exceeds real. And thus, when one makes money, another loses it – this is the essence. How not to become a one who loses? In the fullness of time, I read the story of John Foster’s success and was amazed by his will power and desire to achieve grand tops in trading.
At the average, 95/100 traders lose their money at the exchange. I need you to join statistics of successful people, and not those who lose or have lost. As you can see, there are more people who waste deposits than those who increase them. There are several most dangerous enemies of a trader:
- Emotions and feelings (fear, passion, stress, lack of sleep…)
- Technical difficulties (unfair brokers, no strategy…)
Passion is the desire to win back what is yours. There, it’s important to remember that market doesn’t owe anything to you. Your loss is your mistake. You have to find it, realize and never repeat. A trader’s diary can help you with that. You should write date, time and reason of opening an order (technical analysis) there. And then, look at them and analyze reasons why some of them are profitable, and some are not.
Don’t be afraid to open another order. You should stick to your strategy. You’ve created it, believed in it and tested it. It is the base of your decisions. Don’t doubt in it.
Stress and Others
Like fear, this type of emotions makes you make wrong decisions. Remove emotions from trading, follow rules and you will surely get successful working.
Lack of Sleep
Harmful for anybody. Bad sleep slows down reaction, hinders from thinking. You can miss a good chance to make money and enter in a wrong place. So, sleep well and deep – it’s also significant, even if you have just started the way of a trader.
Remember: gaining is possible only with a working strategy and a trader. If one of the elements doesn’t work or works poor – losses will come. And we don’t want them, do we?
Watch for yourself and your emotions. Believe in your strategy – it’s your brainchild and investment. It’s all any trader needs not to lose their deposit.
- Unfair Brokers. Unfortunately, we must take it into consideration. There are some entrepreneurs that want to get profits and don’t give anything back. They know the answer to the problem “what are binary options really”, and know their legal aspects. Such people organize fake brokers, which break unexperienced and don’t pay to those who gain. Their main tool is drawn quotes. Some of them, especially smart, add symbols after the point in the price of an asset. In classical variant, 4 digits, sometimes 5 are used after the point. All the digits after the 5th are the fraud. These prices can’t be compared with anything. A broker sets them as they wish.
- No Strategy. It’s quite obvious. To try trading without a strategy is like playing a roulette. You cannot just come and begin clicking buttons. You need to realize every single order.
- We can also talk about lack of preparation and wrong motivation. Be serious and clearly-thinking about trading. Most novice traders count profits in money – it’s wrong. With experience, you will count earned percent of profits or ratio of profitable and unprofitable orders. There are some people who come not for profits. They are eager to trade for trading. It’s incorrect too – you should have a clarified goal, and it would be better in percent of profit or financial view. Don’t make orders for the process itself.
Many brokers don’t let orders enter the market but they know the answer to the question “what are binary options really” and work inside their companies, for charges. Development of the Internet gave the opportunity for traders to leave feedbacks about brokers, exchange their experience. This is the main problem for unfair brokers and the sacred treasure for traders.
It’s important not only to make money, but also to withdraw your funds. The goal of an unfair broker is not to let anyone earn. The disapproval of your profits by your broker due to unclear reasons and fiction rules, drawn quotes or just unproven blocks of accounts – all of that is the headache for a novice trader. Experienced can detect the fraud at glance, but even they fail sometimes. You need to use their experience. It’s great they don’t classify their knowledge, and you can meet them at forums and get a great talk.
This very way, I found my broker. Actually, I made several mistakes while searching, but because of forums, I lost less than could. Today, my losses are fully covered and I have quite stable profit, withdrawing $8,000-10,000 every months.
By the way, novices are often attracted and gotten tricked by tons of images looking like certificates of the broker on its website. Don’t believe them! Spend some time, search for websites of companies giving these certificates, check them. It can save several hundred or thousand of your first deposit.
Why did I choose it? I was just advised to. When the company appeared, its first clients also emerged. As always, they were experienced traders able to take risks using a small deposit for testing. Having read their stories of trading, I decided to try. One of testers is my acquaintance. Having visited the office in Europe, gotten a proper consultation of their specialists, I believed them even more. From that moment, I realized that I would work with them. Pros included fair technical support, high quality of order fulfillment, no problem with profits withdrawal…, all in all, it’s actually what’s needed from a broker.
Which Size Does Your Wallet Have?
I my childhood, I often heard the phrase “wallet is not infinite”. I didn’t understand it then. Today, I realize it, but it has another sense for me. When I came with my small wallet to an ATM in order to get my first incomes, it didn’t have notes of large denominations and gave small for me. Surely, this pack of papers fitted only my pocket, and it was inconvenient but pleasant.
So how much can you earn? It’s only up to you. Don’t set enormous goals, for example, to earn 1 million from $10-deposit. Set real goals and they should be in %. And create a plan for several months – this is the best way.
If you set a purpose to gain 30-40% per month and select a final amount, for instance, $30,000, then you will reach it in 10 months with $1,000-2,000 of the initial deposit. Quite good, isn’t it? From this moment, you monthly income will be about $5,000-7,000, which will be easily withdrawn, if you choose a fair and reliable broker.
Screw It. Just Make Money.
Read to these words, you know enough, including answers to the following questions:
- what are binary options really
- how to choose a reliable broker
- how to make money and withdraw it
What’s left? Just to wish you good luck in this interesting world of binary options. Your way is in its very beginning and today, your first order will be opened properly and literally. No matter what result you will get, it’s important to realize what you do and why. And for that, you have s goal and all resources. To wait means to waste time and knowledge. Don’t doubt too much! Screw it and do it -while the theory is actual, prove and secure it with practice.